We're not speaking to Sony, says MS

Microsoft executive Aaron Greenberg has denied the company is in talks with Sony to bring Blu-ray technology to Xbox 360.

Which is what Sony Electronics president Stan Glasgow claimed was going on earlier this month. But speaking to Reuters Greenberg said, "Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience.

"We're the only console offering digital distribution of entertainment content," he added.

So what about recent comments from Microsoft CEO Steve Ballmer about supporting Blu-ray "in ways that make sense"? Well, it would seem those ways don't include producing a player peripheral for Xbox 360.

Meanwhile, Microsoft is still citing stock shortages as the reason PlayStation 3 is outselling Xbox 360 in the US. "We definitely expect we will trail in February as a result of our supply constraints," Greenberg said. "By April, we will be in a very healthy inventory situation." That'd be just in time for the launch of Grand Theft Auto IV on the 29th, then.

It's all about what you get for your money, according to Greenberg. "We still think we have a great value, that we have significantly better value than Sony," he stated. "Every month we've actually been in stock we've outsold them by a 2 to 1 margin."